Q: What is the ruling relating to the deduction of debts owed from the total of Zakah that is due?
A: The total amount of debts and liabilities will be deducted from ones total zakaatable assets. If after deduction the total amount one posses reaches nisaab zakaat will be waajib on that amount. Refer to http://muftionline.co.za/node/28
And Allah Ta’ala (الله تعالى) knows best.
قال الحصكفي: فارغ عن دين له مطالب من جهة العباد (شامي 2/260)
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